Employers’ group Ibec has warned of a major crash in export volumes and significant jobs losses as a result of the sterling crisis unless remedial measures are introduced in Tuesday’s budget.

As the British pound breached the 90 pence barrier, Food and Drink Industry Ireland (FDII), the Ibec group that represents the industry, warned the economic fallout for the sector could far exceed that of previous currency crises.

"The current change in currency value is structural, not cyclical, and has occurred following fundamental changes to the economic and business environment domestically and in the UK," said FDII director Paul Kelly.

“This makes it next to impossible to pass through currency changes to export customers or absorb them within businesses. The likely damage is potentially enormous in terms of reduced export volumes and job losses.”

The FDII called on the Government to take action in the budget to assist exporters. It wants a €25 million fund to support companies diversifying into new markets and the reintroduction of the employment subsidy scheme and the enterprise stabilisation measures last applied in 2009-2011.

It also warned the Government that nothing should be done that would add to business costs “at this time of acute commercial pressure”.